German inflation slows further in July

Inflation in Germany, the biggest economy in the 12-country euro zone, slowed further in July, preliminary data published by …

Inflation in Germany, the biggest economy in the 12-country euro zone, slowed further in July, preliminary data published by the Federal Statistics Office showed today.

The German consumer price index (CPI) rose by 0.1 per cent in July from the figure for June and was 2.7 per cent higher than it had been in July 2000, the office said in a statement.The annual rate of change was therefore substantially slower than the previous month when CPI had risen by 3.1 per cent on a 12-month basis.

The slowdown was attributable to lower fuel prices, the office explained.

Preliminary pan-German inflation is calculated on the basis of consumer price data for six regional states - Baden-Wuerttemberg, Bavaria, Brandenburg, Hesse, North RhineWestphalia and Saxony.

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Fuel prices in all six states declined by 0.4-to-1.6 per cent on a 12-month basis in July, the statistics office said.

Final July CPI data based on cost-of-living data from all 16 states was scheduled to be published in mid-August.

Pan-German inflation had already slowed substantially to 3.1 per cent in June from 3.5 per cent in May.

AFP